Who chooses assets for investment and how?

(Write in the comments)

I choose by industry of the crypto world (described in the previous article), as well as by parameters.

Here are the main parameters and information that I think should be considered when choosing a cryptocurrency coin for investment:

1 Market Capitalization (Market Cap):

◦ A large market cap often indicates stability and market recognition. However, newer projects with smaller capitalizations may offer greater growth potential.

2 Utility for society:

◦ What problem does this cryptocurrency or blockchain solve? Is there a real application, or is it just a speculative asset?

3 Team and Developers:

◦ Who is behind the project? The experience and reputation of the team is very important. I check their biographies, previous projects, and social media activity.

4 Technology and Innovation:

◦ Are there any technological innovations or improvements compared to other cryptocurrencies? How does blockchain or other technologies used work?

5 White Paper and Smart Contract:

◦ White paper of the project to understand the technical side and business model. Smart contract to know how many coins can be created, the number of unblocked coins and the unlocking dates and whether coin burning is included in the smart contract of the project.

6 Community and Support:

◦ Which influencers are doing PR? Social networks. Community activity on forums, social networks, and platforms like Reddit, Twitter, Discord can indicate support for the project. Which funds are investing and at what price and at what stages were they funded?

7 Partnerships and Integrations:

◦ Does the project have partnerships with large companies or integrations with other platforms?

8 Regulatory Environment:

◦ How does cryptocurrency meet or can meet regulatory requirements in different countries?

9 Trading Volume:

◦ High trading volume usually indicates liquidity and interest in the coin.

10 Price History and Volatility:

◦ Analyzing past price fluctuations can help you understand how risky an investment may be.

11 Future Updates and Development (Roadmap):

◦ What are the plans for the future development of the project? Promises, deadlines. Is there a clear roadmap? Pros and cons.

12 Competitor Analysis:

◦ How does the coin position itself among other similar projects?

This way, you can be more confident about where to invest your money.

Subscribe, I will write about which projects I choose, as well as the investment period and my opinion about the coin, and provide links to information.